WINNIPEG — Temple Hotels Inc. will be cutting ties with its hotel- and asset-management partners in favour of internalizing those roles.
For the past six years, the Winnipeg-based real-estate investment company has used Montreal’s Atlific Hotels for its hotel management operations, and Winnipeg’s Shelter Canadian Properties Limited for its corporate asset-management services. The combined contracts, which total $6.5 million in the past year ended Sept. 30, comprise 3.5 per cent of hotel revenues.
“Internalization of the hotel and asset management functions is an important step in Temple’s growth.” said Arni Thorsteinson, CEO of Temple. “We believe that proceeding with the internalization plan is in the best interest of shareholders.” To make the switch, which is expected to be completed over the next two years, the company may purchase an existing hotel-management company or develop its own management platform or a combination of both.